The European Central Bank (ECB) has announced a two-year “preparation phase” that will begin on November 1. During this phase, the ECB will finalize rules, choose its private-sector partners, and conduct testing and experimentation.
The digital euro is a digital form of the euro that would be issued by the ECB and available to all residents of the euro area. It would be a complement to cash and banknotes, not a replacement.
The ECB says that the digital euro would offer a number of advantages, including security and stability, convenience and efficiency, and that the digital euro would be available to everyone in the euro area, regardless of their income or social status.
The ECB’s decision makes the ECB one of the first major central banks to begin developing a digital currency. The digital euro is expected to face competition from a number of private-sector initiatives, including stablecoins and cryptocurrencies. However, the ECB believes that the digital euro will be more attractive to consumers and businesses because it will be backed by the central bank and subject to strict regulations.
The sources for this piece include an article in Reuters.